Updated: March 01, 2018
Status: Ongoing Case
In January 2018, Labaton Sucharow filed two related class actions on behalf of consumers who purchased computers and other devices containing Intel computer chips. The action alleges that Intel has for years sold computer chips that suffer from two security flaws—known as Meltdown and Spectre—that allow a non-privileged user (i.e., a hacker) to access information on a computer that the hacker should not be able to access, such as secret keys, usernames, passwords, and any other sensitive information a user enters into a computer.
Only a complete redesign of Intel chips can completely resolve the Meltdown and Spectre security flaws. Installing a software “patch” or update can potentially resolve the Meltdown flaw (Spectre can only be completely fixed by replacing the hardware), but these software patches dramatically slow down computer performance. This decrease in performance has a significant impact on the value of a computer chip: Intel’s chips would have been sold at a much lower price had they been priced to reflect the speed at which they perform when patched. As a result, the plaintiffs and the class, who paid a premium for Intel-designed chips, have suffered ascertainable injuries and loss of money or property as a result of Intel’s wrongful conduct
The cases are Bernstein et al. v. Intel Corp., No. 18-cv-00526 and United Food and Commercial Workers International Union v. Intel Corp., No. 18-cv-00574. Labaton Sucharow represents Eric H. Bernstein, Stephen C. Bevilacqua, and United Food and Commercial Workers International Union.